The Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, has projected that petrol prices in Nigeria are indeed expected to decrease further until June 2025.
This follows the recent price cuts from the Nigeria National Petroleum Company Limited and Dangote Refinery, which are aiming to make fuel more affordable for Nigerians.
Rewane made this disclosure during an appearance on Channels Television’s Business Morning on Tuesday.
He explained that the current decline in petrol prices is expected to continue for several more months, likely until mid-2025.
He emphasized that the price cuts in petrol are largely driven by the competition between Dangote Refinery and NNPCL.
This “price war” is causing both companies to reduce their fuel rates, benefiting consumers in the short term by offering more affordable prices
“So, generally, between now and June, we will see prices begin to decline. But after June, as things stabilize, depending on what happens in the global oil and currency market, we might begin to see some stabilization,” he stated.
“In a price war, nobody wins; the consumers win in the short run, and then eventually, the market goes back to where it should be. But, at the end of the day, between now and June, the price leadership will be firmly established,” Rewane stated.
The recent petrol price drop was initiated by Dangote Refinery, which announced lower prices across various regions in Nigeria.
The refinery attributed the reduction to improved production efficiency and lower operational costs.
This move prompted a response from NNPCL, further intensifying competition and driving prices down.
As of the latest update, Dangote Refinery’s petrol prices have dropped to ₦860 per litre in Lagos, ₦870 per litre in the South-West, ₦880 per litre in the North, and ₦890 per litre in the South-South and South-East. Other major retailers, including Ardova Petroleum (AP) and Heyden stations, have also adjusted their prices accordingly
Following Dangote Refinery’s price cut, NNPCL quickly responded by lowering its petrol price to ₦860 per litre at its filling stations in Lagos.
